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Basic Principles Of Insurance > Exam California Laws & Ethics Pertinent To Insurance > Flashcards

Exam California Laws & Ethics Pertinent To Insurance Flashcards

1
Q

Under the California insurance code, A licensee license number must be printed at what size on all price quotes, business cards, and printed material?

A

Are the same size print as a Licensee‘s phone number, fax number or address

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2
Q

Pete is a licensed agent who has misappropriated fiduciary funds to his own use. What is Pete guilty of?

A

Theft

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3
Q

Which type of jurisdiction requires an insurer to have his rates accepted by the insurance department prior to using them?

A

Prior acceptance

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4
Q

Jim is applying to become an insurance agent and has a past misdemeanor conviction that was later expunged due to California Penal code 1203.4. Which of the following statements is correct

A

Jim must still disclose a conviction on his insurance license application

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5
Q

According to the California insurance code how is the word may interpreted?

A

Permissive

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6
Q

What is the purpose of the pre-existing condition insurance plan (PCIP)?

A

PCIP was created by the PPACA for people rejected by private health insurance due to pre-existing conditions

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7
Q

Who does a life settlement broker represent?

A

Individuals wanted to sell their life policies to a third party 

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8
Q

Both the federal and state government jointly finance which health insurance entitlement program?

A

Medi-Cal

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9
Q

Which of the following is not an accurate description of access for infants and mothers programs? (AIM)?

A

Only women who have private insurance plans with a maternity only deductible or a copayment greater than $1500 or eligible

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10
Q

When an insurer has met the qualifications necessary to transact business in California, it is said to be

A

Admitted

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11
Q

Life insurance surplus must be distributed to policy owners at what frequency?

A

Annually

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12
Q

How long must life agents keep their transaction records?

A

5 years

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13
Q

How is an agent first year commission calculated for a replacement long term policy?

A

Based on the difference between the new and original policy annual premium

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14
Q

According to section 1729.2 of the California insurance code, which of these does not qualify as background information?

A

Misdemeanor charges filed, not resulting on in a conviction

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15
Q

A representation may be altered or withdrawal

A

Only before the insurance is in effect

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16
Q

How many activities of daily living must an insured be unable to perform in order to meet the chronologically illness requirement of a long-term care policy?

A

Minimum of two activities of daily living

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17
Q

Which word implies permissiveness according to the California Insurance code?

A

May

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18
Q

An insurer that has been found using how your rates based on race, religion, or Ethnicity is said to be engaging in?

A

Unfair discrimination

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19
Q

Paul has an existing annuity and it’s sold a new one, in which the new policy holds no greater financial benefit to than the existing contract. This is considered

A

Unnecessary replacement

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20
Q

According to the PPACA, an adult can be covered by an parents health care plan until what age?

A

26

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21
Q

Why is life insurance policies delivery date important?

A

The free look period begins on the policy delivery date

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22
Q

According to the PPAC a, the medical enrollment colors is 80% actuarial value is called?

A

Gold

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23
Q

What does the term illustration means when using the phrase life insurance policy illustration, according to the California insurance code

A

Presentation of policy features that includes nonguaranteed elements

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24
Q

A person who is asserts a right of the recovery under an insurance policy is called

A

Claimant

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25
Q

The California insurance code requires that insurer must have enough assets to cover is liabilities and for reassurance of all outstanding risk. To remain solvent, it must also possess additional assets equal to what amount?

A

It’s Paid in capital

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26
Q

People with low income can Be provided with medical assistance through which program?

A

Medi-Cal

27
Q

Kimberly is an employee who leaves under the family and medical leave act (FMLA). What will happen to her group health coverage?

A

She continues to be enrolled during their leave

28
Q

Which of the following is not a valid reason to replace an existing long-term care policy?

A

New policy has higher premiums with fewer benefits

29
Q

According to the California insurance code, which of the following is not an example of an insurable event?

A

And insured suffers a financial loss in the state lottery

30
Q

In what order are people on the MRMIP waiting list allowed to enrolled?

A

Based on the date and individual application is received

31
Q

According to the California insurance code, what term is used to describe a fact so important it could affect the policy premium?

A

Materiality

32
Q

An individual who transacts life, disability, or life and accident and health insurance on behalf of an insurer is called

A

Life agent

33
Q

The California insurance code allows individual how many days to cancel a policy for a full refund?

A

Between 10 and 30 days

34
Q

In California, an ensured organize under the state laws of Oregon is called a?

A

Foreign insurer

35
Q

The California insurance code has authorize standards for names used by life insurance agents. Which of the following, if any, are automatically acceptable for Lance manyon , a holder of the CLU designation?

A

Lance Manyon insurance services

36
Q

An agent had advertised that the insurer to which the agent is appointed with is a member of the insurance guarantee association. This agent has committed

A

Unfair method of competition

37
Q

According to the California insurance code, who is responsible for submitting a life agent appointment?

A

Insurer

38
Q

An agent attempts to start the replacement of an existing life insurance policy is known as

A

Conservation

39
Q

In California, the elderly can receive information about health related issues from?

A

Health insurance counseling and advocacy program (HiCAP)

40
Q

The free look period for life insurance policy owners a 60 or older is

A

30 days

41
Q

Where must you specifically reside to qualify for MRMIP?

A

California

42
Q

Which of the following does not have to be included on life insurance policies illustrations?

A

Statement that all values and benefits are guaranteed

43
Q

What effect did the pregnancy discrimination act have on the health industry?

A

Pregnancies must be treated as any other medical condition

44
Q

What prevents a life insurance policy from being re it by the insurer ever been in force for two years?

A

Incontestability clause

45
Q

When intentional concealment is involved, what course of action is the insured party entitled to?

A

Rescission of the contract

46
Q

Failure to report background changes within 30 days as required under the section 1729.2 of the California insurance code could subject a license or applicant to

A

Fine, suspension, and denial. All the above

47
Q

An insurance policy issued in California may be called a comprehensive long-term care insurance policy if benefits or provide it for?

A

Institutional “ Nursing facilities” And home care

48
Q

Anyone employed in California to assist an insurance Agent and transacting insurance is called an

A

Solicitor

49
Q

What is required after a life agent sells an insurance policy to an applicant without being appointed by the insurer?

A

Notice of appointment must be submitted to the commissioner

50
Q

According to the California insurance code, what is the maximum penalty per violation for anyone who on willfully commits an unfair method of competition?

A

$5000

51
Q

An insurance company is entitled to Transact Business in California is called?

A

An admitted carrier

52
Q

Which of the following does a California department of insurance (CDI)  Has no jurisdiction over?

A

Medicare

53
Q

Which of the following is not considered To be an unfair claim settlement practice?

A

Advising a claimant to hire an attorney 

54
Q

Which of the following is not considered to be an act of insurance solicitation?

A

Publishing a magazine where one of the advertisers is an insurer. 

55
Q

Which of the following does the California insurance code Not require an insurance policy to specific? 

A

The insurer financial rating

56
Q

Which of the following is not A primary objective of insurance regulation?

A

Interpret policy provisions

57
Q

According to the California insurance code, What is insurance?

A

A contract

58
Q

People with low income can be provided With medical Assistance Through which program?

A

Medi-Cal

59
Q

All of these are reasons the commissioner May disapprove a licensee’s request to use A fictitious Name except?

A

The name is a licensee actual name.

60
Q

The cost of services charged for the insurance information of counseling & advocacy program (HiCAP) is?

A

No cost.

61
Q

Which entity has jurisdiction Over healthcare coverage Providers?

A

Department of insurance

62
Q

Insurance agents and brokers must make their insurance records available to the commissioner how often?

A

At all times

63
Q

What does MRMIP stand for?

A

Major risk medical insurance program

64
Q

According to the California code governing claims settlement practices, Which of the following is not considered To be an act of unfair Discrimination?

A

Denial our claim based on reckless behavior

Basic Principles Of Insurance (11 decks)

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